Australian High Commissioner to India, Harinder Sidhu has said she is very impressed by India’s policy decision of demonetising Rs 500 and Rs 1000 currency notes.
In an interview with , Ms Sidhu said Australia may take inspiration from India to fight the black money.
“We’ve just announced a black money task force in Australia; there’s been some conversation about demonetising our highest denomination note,” she said.
Ms Sidhu also said she was impressed with India’s handling of the effects of demonetisation.
“I am watching with great fascination how it unfolds — if it works, it will be a profound change for the Indian system. It’s certainly the most radical policy I’ve ever seen put into effect. I’m very impressed with how the government has been grappling with it.”
In Australia, the black economy accounts for 1.5 per cent of the GDP with many payments made in cash which is allegedly not declared at the time of filing tax returns.
Australia, during the mid-year budget review in December, announced a special task force to investigation the future of $100 notes and the possibility of capping cash transactions beyond a certain limit.
Revenue and Financial Services Minister Kelly O’Dwyer earlier said that there were three times as many $100 notes in circulation as $5’s.
Speaking to ABC Radio, she had refused to rule out scrapping the $100 notes and said it was up to the expert panel to make recommendations.
